22 Jan 2010

A market order is an order to buy or sell a currency pair at the current market price. Thus the FX Trading Station will always show two prices for each currency pair - the price you can buy (also known as the questions), and the price you can sell (also known as the bid).A market order is an order to buy or sell a currency pair at the current market price. Thus the FX Trading Station will always show two prices for each currency pair - the price you can buy (also known as the questions), and the price you can sell (also known as the bid).
Thus the market price of EUR / USD at 1.2200 to 1.2205 - meaning traders can buy the EUR / USD at 1.2205, but would have to sell at 1.2200. These prices reflect the current market prices, and traders who choose to enter market orders would be filled at the rate they see. The main advantage of the market orders is that they provide the trader that he / she will function. The main drawback is that the trader is not the best price they could have been given had they used a different type.
Another drawback - and one often overlooked - is that market orders are more conducive to his reckless and without discipline used. Use with other tasks, such as stop and limit orders, are better suited for helping companies stay disciplined. Entry Orders

• Advantage: more likely that the trader gets the price he / she wants.

• Disadvantage: can not reach the market rate given the trader, and so the operator may miss the opportunity.

All orders are essentially conditional entry orders, they will only be filled if the market reaches the specified rate. Suppose you are trading USD / JPY and the current quote is 120,50-55. You can buy one item to at 120.15, for example, so your order will only be filled when the market reached 120.15. This you may receive a better price. There are two types of entry orders: limit entry orders and stop entry orders.


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